Paying for your mods...
02-10-2008, 04:06 PM
#1
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Paying for your mods... I have a full bolt on and cammed Trans am, every mod ive done ive paid cash for, well i finally saved up a decent amount of money, and was going to start appearance mods, i.e. ordering some tt2's with tires, my question is, if i can afford to make credit card payments of $100 a month is it worth it to just keep the money in the bank and charge it to the plastic? What do you guys think?
02-10-2008, 04:34 PM
#3
I would set aside more than $100 so you don't get raped with interest and end up paying a 1/3-2x more for your mods.
I usually pay on plastic then pay it off at the end of the month that way I atleast get some credit for making purchases which cash wont do
I usually pay on plastic then pay it off at the end of the month that way I atleast get some credit for making purchases which cash wont do
02-10-2008, 06:05 PM
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if you don't want to pay the cash, i'd suggest getting a signature loan instead of a credit card. i dunno what kinda card you have, but a bank loan will be a fixed payment with fixed interest and build credit just the same....plus you can usually do an automatic payment withdrawl....
just my $0.02
just my $0.02
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02-11-2008, 02:43 AM
#9
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If you have already saved up the cash, why not use it? Why let the credit card company make money off your purchase?
Unless you have a true 0% card, of course. Otherwise I'd just spend the cash.
Unless you have a true 0% card, of course. Otherwise I'd just spend the cash.
02-11-2008, 09:49 AM
#15
I have had credit cards for 3 years and never had more than 0% interest.
I pay for a lot of things on CC, pay it off, then move onto the next thing. I wouldn't pay interest on any mods tho.... thats just silly.
I pay for a lot of things on CC, pay it off, then move onto the next thing. I wouldn't pay interest on any mods tho.... thats just silly.
02-11-2008, 10:08 AM
#16
An Example
Here is the breakdown of the numbers for the first month of credit card debt:
Principal: $2,000
Interest: $33.33 ($2,000 x (1+20%/12))
Payment: $60 (3% of remaining balance)
Principal Repayment: $26.67
Remaining Balance: $1,973.33 ($2,000 - $26.67)
These calculations are done every month until the credit card debt is paid off.
In lamens terms. There was minimum payment of $60 and only 26.67 of that goes toward your actual balance of you total purchase. thats 33.33 in interest in one month.
Here is the breakdown of the numbers for the first month of credit card debt:
Principal: $2,000
Interest: $33.33 ($2,000 x (1+20%/12))
Payment: $60 (3% of remaining balance)
Principal Repayment: $26.67
Remaining Balance: $1,973.33 ($2,000 - $26.67)
These calculations are done every month until the credit card debt is paid off.
In lamens terms. There was minimum payment of $60 and only 26.67 of that goes toward your actual balance of you total purchase. thats 33.33 in interest in one month.
02-11-2008, 01:06 PM
#18
Hmmm I've never went out of control with CC spending, maybe some people don't have as much control over their habits. My CC is 0% as well and I agreenot paying interest on mods. Like I said before I like using my CC because it builds my credit and I also get my parts so it's a win win for me.
There are many options, just don't be foolish and take out a loan at 7-10% or use your home equity stuff like that [ I know people that have done this ].
Also, never pay just your minimum, you'll never pay off your debt. Take all the different information on here and decide what is best for you.
As a side note most mod purchases are big and most people's Debit/Check cards only allow up to $500-700 a day or $1500 for purchase using your credit option on there. This is also why I use my CC for purchases so I don't have to have a company run my Debit card every day until it adds up to the price owed.
There are many options, just don't be foolish and take out a loan at 7-10% or use your home equity stuff like that [ I know people that have done this ].
Also, never pay just your minimum, you'll never pay off your debt. Take all the different information on here and decide what is best for you.
As a side note most mod purchases are big and most people's Debit/Check cards only allow up to $500-700 a day or $1500 for purchase using your credit option on there. This is also why I use my CC for purchases so I don't have to have a company run my Debit card every day until it adds up to the price owed.
02-11-2008, 02:11 PM
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you pay a premium (interest) for the privelage of keeping your cash in the bank. Even if you have your cash in a high interest yeild money market, the best you can do is ~4.5%, credit cards will charge you more like 18%, so it costs you 15.5% to keep cash in the bank. That's very expensive money, compare that to what you pay for a home mortgage, less than 6% right now.
My advice would be to keep the cash in the bank for your next car and skip mods altogether...and future car payments if possible.
My advice would be to keep the cash in the bank for your next car and skip mods altogether...and future car payments if possible.
